What to do if I was rear-ended and my car was totaled but I still owe on it?

The police report faults the other driver If the insurance company only gives me enough to pay it off do I have the right to sue for what would be a down payment on a new vehicle? And is it appropriate?

Asked on January 30, 2013 under Accident Law, Louisiana

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

In such a case as this, you will receive the fair market value for your car. An insureris required to only compensate you for fair market value of your vehicle. This may be more or less than you still owed on your car loan. if you are not fully compensated for your loss, check to see if you have "GAP" insurance; this insurance pays the difference between what an owenr is paid for their vehicle and the amount they still on it. If not, the yes, you can sue the at-fault driver from any sums that you will be out-of-pocket.


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